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2024 Supreme(Gau) 1832

IN THE HIGH COURT OF GAUHATI
MANISH CHOUDHURY, J.
Mongve Rongpi – Appellant
Versus
The Indian Oil Corporation Limited and Others – Respondents
Writ Petition (C) No. 2291 of 2023
Decided On : 20-04-2024

Advocates:
Advocate Appeared:
For the Appellants : B.D. Das, H.R. Das
For the Respondents: M.K. Choudhury, P. Bharadwaj, R.S. Ronghang

The court ruled that a nominated member's status does not constitute employment, allowing Indian Oil Corporation Limited to require resignation for dealership eligibility, emphasizing fair distribution of State largesses.

Headnote:(A) Constitution of India - Article 226 - Writ petition seeking to quash a letter from Indian Oil Corporation Limited (IOCL) regarding Retail Outlet Dealership - Petitioner, a nominated member of the Karbi Anglong Autonomous Council, was informed that his application was ineligible due to his position - Court held that the relationship of a nominated member does not equate to employment and thus, the petitioner must resign to be eligible for the dealership - Decision of IOCL was found to be reasonable and in public interest. (Paras 1, 4, 10, 40)

(B) Judicial Review - The court emphasized that it does not sit as an appellate authority over commercial decisions made by state instrumentalities, but ensures that such decisions are made lawfully and without arbitrariness. (Paras 28, 37)

JUDGMENT :

MANISH CHOUDHURY, J.

1. The petitioner has instituted the instant writ petition under Article 226 of the Constitution of India seeking setting aside and quashing of a Letter bearing no. TDO/R/RO Dealership/Diphu Town/731 dated 17.02.2023 issued by the respondent no. 2 on behalf of the respondent Indian Oil Corporation Limited (IOCL) and for a direction in the nature of mandamus to the respondent authorities in the Indian Oil Corporation Limited (IOCL) to award the Retail Outlet Dealership at the location, Diphu Town Not on NH/SH, District - Karbi Anglong to the petitioner.

2. The respondent no. 1, Indian Oil Corporation Limited (IOCL), a Public Sector Oil Marketing Company (OMC), published an Advertisement on 25.11.2018 inviting applications from eligible persons for appointment as a dealer in respect of a proposed Retail Outlet Dealership for the location at Diphu Town Not on NH/SH, District - Karbi Anglong (hereinafter referred to as ‘the subject-location’ for easy reference) in the State of Assam. The Advertisement mentioned that Retail Outlet Dealership would be awarded to a candidate belonging to the Scheduled Tribe category. The petitioner herein, an MBBS Degree-holder, responded to the said Advertisement by submitting his application on-line along with all the necessary supporting documents, and his application was registered as Application Ref. no. 15455382257935.

3. It was on 04.07.2021, the petitioner was intimated that he had been qualified for the Draw of Lots for selection of Retail Outlet Dealership for the subject-location. The petitioner was requested to be present personally along with the documents, indicated therein, at the address mentioned on 14.07.2021 for the Draw of Lots. However, the Draw of Lots, scheduled on 14.07.2021, got deferred and the same was re-scheduled on 27.08.2021 at Hotel Royal Highness, Khaitan Plaza, Tinsukia, which fact was intimated to the petitioner by a Communication dated 17.08.2021. The Draw of Lots scheduled on 27.08.2021 was again deferred and finally, the Draw of Lots was held on 25.08.2022 at the venue: Jubilee Hall, IOCL Township, Noonmati, Guwahati. Subsequent to the Draw of Lots held on 25.08.2022, the petitioner was informed about the result of the Draw of Lots for Retail Outlet Dealership at the subject-location by a Communication dated 26.08.2022. By the Communication dated 26.08.2022, the petitioner was informed that in the Draw of Lots held on 25.08.2022, the petitioner was declared as selected. It was further informed that the same was only a preliminary intimation towards selection of the petitioner for the Retail Outlet Dealership at the subject-location and the award of dealership would be subject to compliance of the terms and conditions of the IOCL. After his selection in the Draw of Lots, the petitioner was informed by a Communication dated 11.11.2022 that the Land Evaluation Committee (LEC) would visit the site offered by the petitioner at the subject-location for inspection. The petitioner was asked to be present personally at the site along with the relevant documents. After the task of the Land Evaluation Committee (LEC) was over, the petitioner was informed by another Communication dated 28.11.2022 to the effect that the officers of the IOCL would pay a visit on 08.12.2022 for carrying out Field Verification of Credentials (FVC) and the petitioner was asked to be present personally along with all the original documents submitted in connection with his application for Retail Outlet Dealership for the purpose of verification by the members of the Field Verification of Credentials (FVC) Committee. After completion of the process of Field Verification of Credentials (FVC), the respondent no. 2 issued the impugned Letter bearing no. TDO/R/RO Dealership/Diphu Town/731 dated 17.02.2023 in connection with award of Retail Outlet Dealership for the subject-location.

4. By the said Letter dated 17.02.2023, it has been informed to the petitioner that during Fiel

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